According to the Law of Increasing Costs,as a Textile Company

question 261

Multiple Choice

According to the law of increasing costs,as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

• A)the cost of reducing 70 percent of the dust in the factory will be the same as the cost of reducing the first 50 percent of the dust in the factory.
• B)the cost of reducing 70 percent of the dust in the factory will be less than the cost of reducing the first 50 percent of the dust in the factory.
• C)the cost of reducing 70 percent of the dust in the factory will be greater than the cost of reducing the first 50 percent of the dust in the factory.

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Definitions:

Economic Profits

The surplus after a firm subtracts its total costs from its total revenue, considering both explicit and implicit costs.

Consumer Desire

The inclination or preference of consumers towards specific goods, services, or experiences, driven by individual needs and wants.

Economic Efficiency

A situation where resources are allocated in the most effective way possible to meet an economy's needs and wants.

Roundabout Production

A process of investing in capital goods to enhance productivity and efficiency, typically leading to greater output in the long run.